Raport skonsolidowany Bank Millennium S.A. za 1 kwartał 2025

Bank Millennium S.A. Capital Group has released its consolidated report for the 1st quarter of 2025, showcasing a robust financial performance despite ongoing challenges related to FX mortgage legacy costs. Below is a detailed analysis of the key financial metrics and strategic developments.

• Net Profit: PLN179.3m, marking a 40% increase y/y.
• Return on Equity (ROE): 9.1% annualized, adjusted to 12.3% for BFG fee.
• Interest Income: PLN2.27bn, up 5% y/y.
• Net Interest Margin (NIM): 4.23%, a decrease of 13bps y/y.
• Operating Costs: PLN668m, an increase of 12% y/y.
• Credit Risk Cost: 45bps, down 23bps y/y.
• Total Assets: PLN142.8bn, up 3% y/y.
• Liquidity Coverage Ratio (LCR): 418%, indicating strong liquidity.
• Capital Ratios: TCR at 17.34%, CET1 at 15.15%, both comfortably above regulatory minima.
• FX Mortgage Loans: Net PLN1.19bn, a significant decrease of 51% y/y.

The bank has maintained a stable loan quality with an impaired loans ratio of 4.5% and a non-performing loan (NPL) coverage of 74%. The retail and corporate loan segments have shown moderate growth, with consumer loans increasing by 7% y/y and corporate loans by 4% y/y.

Despite the challenges posed by the FX mortgage portfolio, the bank has managed to reduce the number of active FX mortgage loans by 29% y/y. Legal risk provisions remain substantial, with ongoing court cases and settlements.

Strategically, Bank Millennium has launched the "Millennium 2028 – Value and Growth" initiative, focusing on enhancing customer experience, digitalization, and operational excellence. The bank has also extended its ESG efforts, publishing its first ESRS Sustainability Report and launching the "NaszEauto" program for electric car leasing.

In summary, Bank Millennium has delivered strong Q1 2025 results, with significant improvements in profitability and capital ratios. The bank's strategic focus on digital transformation and customer experience, coupled with its robust liquidity position, positions it well for future growth. However, the FX mortgage legal risk remains a material concern, with potential impacts from legislative changes and court rulings.